Renault to Ford: "Non"
Renault has no interest in purchasing Volvo from the Ford Motor Company.
Though Ford has not officially said that Volvo is for sale, Renault Chairman Carlos Ghosn has basically said that it is, but that his company, Renault, isn’t interested.
“Renault needs new products, new technologies. It does not need a new brand,” he said, adding, [g]iven the substantial amount of money we are being asked for Volvo, I don’t see the interest for Renault.”
So, it seems that Volvo is up for sale, after all – and that there is even a price specified by Ford. Unlike the other Premier Auto Group divisions which Ford is attempting to unload, Jaguar and Land Rover, it is believed that Volvo is profitable. At one time or another, there have been rumors that BMW or Renault would be interested. Renault has now officially denied that it would be a potential buyer.
Some outside analysts have questioned the wisdom of Ford selling Volvo, pointing out that Volvo possesses a lot of engineering talent and has been a valuable source of platforms for Ford branded products. Ghosn’s remarks imply that Ford may not be set on actually selling Volvo, and may be interested in doing so only if it can get a premium price for the division.
Ford may have been simply floating a trial balloon to see what interest might exist, and at what price. With the current contraction of the private equity market, it is likely that financing a Volvo purchase would be expensive, though the fact that the company is profitable might make it easier to do that some a recent deal for a money-losing manufacturer.
There may end up being no deal for Volvo.
Ford, of course, can claim that there was never any interest in selling the division, as its public statements have consistently denied that the unit is for sale.
Ghosn’s comments say otherwise, but they also explain why Volvo may be part of Ford for some time to come.
Source: Automotive News